Data center monitoring firm LogicMonitor raises $800M at a $2.4B valuation

As companies’ server infrastructure grows, they often run into challenges keeping tabs on the health of their various assets, like their cloud and local data centers. Monitoring tools, also known as observability tools, can help — but lots of tools can become overwhelming. According to one survey, seven in 10 organizations believe that monitoring is made at least somewhat more challenging by “tool sprawl.”

To combat the said tool sprawl, Jie Song, Steve Francis, and Christina Kosmowski founded LogicMonitor, which sells software-as-a-service tools to monitor on-premises and cloud environments.

Owned by private equity firm Visa Equity Partners since 2018, LogicFirm on Wednesday announced that it raised $800 million from investors including PSG and Golub Capital. The funding round, which values the LogicMonitor at $2.4 billion inclusive of debt, brings the company’s total raised to around $942 million.

Bloomberg earlier reported the deal.

“In short, AI needs data centers and data centers need LogicMonitor,” Christina Kosmowski, LogicMonitor’s CEO, said in a statement. “We are the connective tissue between AI and data center performance as we have the muscle, pedigree, and, most importantly, the data insights to advance the most important and life-altering AI initiatives.”

Founded 16 years ago, Santa Barbara, California-based LogicMonitor sells products to manage and optimize data center infrastructure. The company’s platform, which is in part powered by AI, aims to provide operational visibility across data centers — and the apps that run on them — to reduce the need for troubleshooting.

Vista Equity Partners acquired LogicMonitor six years ago for $415 million — and recently began working with financial advisors to explore options for the company.

The investment appears to have paid off for Vista, which is remaining a controlling shareholder in LogicMonitor. Today, LogicMonitor has over 100,000 users, and the company has scaled over 650% since mid-2018.

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